It is all over the internet that by 2020 existing bank accounts will be on hold while a new account opening process will require a Tax Identification Number (TIN).
The National Assembly amended sections 33, 49 and 58 of the Personal Income Tax. This will affect the deduction of pension and personal relief allowance. In a nutshell, many human resources managers and entrepreneurs have to review their payroll system.
On the TIN matter
Anyone who needs to open an account or operate an existing account will submit TIN as part of the Know Your Customer requirement. This includes employees, self-employed, unemployed(student, corps members – thiers is simply for accreditation) and Nigerians living in the diaspora.
According to the minister, the debit/credit card will cease to work, no deposit or debit will be allowed on an existing account once the bill is passed to law.
However, the unemployed and students will not be subject to tax deduction until there is substantial evidence that they earn salaries.
This will be ascertained when a regular amount drops in the account at a specified date of every month.
Also, banks might set out a limit on the amount that a student bank account can receive at a time.
For entrepreneurs, you are advised to profile all your staff for taxation including yourself and remit to the State Internal revenue tax deducted as at when due.
Also, paying of Value Added Tax ( this will upscale from 5%- 7.5% and more goods/services are added to exemption lists) is compulsory; you are also advised to demand a receipt for every withholding tax any organisation remits on your behalf.
The implication of this development is that tax might be deducted at source just like stamp duty comes from the source any time soon especially for defaulters.
If you have your BVN, registered phone number or National ID card, there is a possibility you already have a TIN.
Meanwhile, I implore you to collect your national identity card if you have not received it. The collection of international passport and application to some embassies may also require that you supply National Identification Number.